WisdomTree Mortgage Plus Bond Fund

MTGP

Börsenwert 72,2 Mio. $

According to Bankrate's Mortgage Rates, the national average for a 30-year fixed mortgage is 6.61%. That's uncomfortably high and a major headwind to many prospective homebuyers, particularly those in the first-time category.

In a bid to drive mortgage rates down and foster more home buying among younger people, President Trump recently proposed a plan to purchase $200 billion worth of mortgage-backed securities (MBS). There ETFs for that, which makes sense given the sheer scope of the MBS market.

Fixed income investors looking for bonds with credit profiles comparable to Treasuries with the potential for added upside into year-end and beyond may want to examine mortgage-backed securities (MBS). That task is made easier with ETFs such as the WisdomTree Mortgage Plus Bond Fund (MTGP).

The securitized corner of the fixed income market, or those bonds backed by underlying assets, is massive. But the investment-grade landscape of asset-backed bonds is largely dominated by residential mortgage-backed securities (MBS).

Some fixed income experts believe amid a recent surge in volatility in the bond market, now's the time for investors to consider asset-backed securities. These include mortgage-backed securities.

Last month, the Federal Housing Finance Agency and the Treasury Department put out a press release. It stoked speculation that government sponsored entities (GSEs) Fannie Mae and Freddie Mac could eventually face privatization.

By Kevin Flanagan Key Takeaways Investors using a barbell approach in fixed income can potentially enhance returns by adding securitized assets, such as the WisdomTree Mortgage Plus Bond Fund (MTGP), as a supplementary “plus” component.

The Fed might follow its September interest rate cuts with similar moves well into 2025. So some market participants are reassessing opportunities in bonds.

Following the Federal Reserve's September interest rate cut, mortgage rates surprisingly have not declined. They've actually increased and that might be one of the reasons why mortgage-backed securities (MBS) have retreated in recent weeks.

Last week, the Federal Reserve delivered its widely awaited interest rate cut, paring rates by 50 basis points. That potentially signaled the central bank is on track to lower borrowing costs by 150 bps by Q2 2025.